y both area and population, Texas is the second largest state in the United States. The Lone Star State has the second most electoral votes in the country. There are three cities in Texas with a population above one million: Houston, San Antonio, and Dallas. Two more cities, Austin and Fort Worth, are pushing the million-person mark.

Since 2002, Texas has led the U.S. in export revenue and has had the second highest gross-state product. Were it a country, Texas would have the 10th largest economy in the world.

While everything in Texas seems to be super-sized, one can still appreciate the smaller, finer things in the state.

That is especially true when it comes to small businesses in the Lone Star State. Bigger isn't always better, and small businesses in Texas can attest to that motto. Every American can appreciate a small business that puts a little extra tender, lovin' care into their products, as opposed to Walmart goods that are made on a conveyor belt.

Despite all of its grandiosity, Texas is still home to many towns and cities that offer some of the best small businesses around. LendEDU has recognized the 100 towns and cities in the Lone Star State that have become the very best for starting small business.

Using licensed data, we analyzed over 1,000 Texas communities based on their conduciveness to small businesses. The following three parameters were used to judge each town and city:

opulation Score (20%, listed in table as Pop.)

Income Score (40%, listed in table as Income)

Expenses Score (40%, listed in table as Expenses)

Each parameter featured a few sub-metrics that were used to calculate the total score for each parameter. Afterwords, every Texas community's three parameter scores were summed together to get the final score. The entire process is explained further in the methodology at the bottom of this page.

Below, you will be able to see the 100 towns and cities in Texas that LendEDU has recognized as the very best for starting a small business.

Complete Rankings & Interactive Map of the Best 100 Towns in Texas for Small Businesses

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RankCityCountyPop.IncomeExpensesTotal Score

1PerrytonOchiltree13.9327.6629.6671.25

2BoerneKendall12.9235.7420.1468.80

3La VerniaWilson9.3926.2430.3966.02

4HallsvilleHarrison9.9928.2827.5765.84

5PleasantonAtascosa12.9223.6228.4665.00

6Carrizo SpringsDimmit14.5422.2027.6664.40

7ZapataZapata13.7319.9829.1862.89

8CanyonRandall11.2020.3831.2862.86

9RoanokeDenton15.5419.7827.4962.81

10LumbertonHardin8.0722.8031.6162.48

11WallerWaller13.9331.0817.3962.40

12AndrewsAndrews10.1932.5019.4162.10

13LevellandHockley13.7222.8025.3161.83

14SeminoleGaines11.6028.6621.2661.52

15DecaturWise13.8326.0421.3561.22

16KountzeHardin6.9621.0032.8260.78

17FloresvilleWilson8.8824.4227.2560.55

18GrapevineTarrant15.0518.1627.3360.54

19CarthagePanola10.4024.4425.3960.23

20CastrovilleMedina12.9227.2618.6858.86

21KenedyKarnes13.1219.3826.2758.77

22WoodwayMcLennan16.3515.5425.0756.96

23AledoParker15.2424.8216.8256.88

24WeatherfordParker14.1326.8415.8656.83

25KempnerLampasas6.9622.2027.4956.65

26MonahansWard9.0824.0223.2956.39

27SchertzBexar17.5720.3817.8755.82

28MidlandMidland13.4234.128.1855.72

29ArgyleDenton10.5921.8023.2055.59

30BulverdeComal7.5722.4025.2355.20

31SnyderScurry12.7223.8218.0454.58

32AdkinsBexar5.5520.8028.2154.56

33La GrangeFayette7.6716.9629.5954.22

34RockwallRockwall12.9218.3822.8254.12

35JustinDenton10.2917.3626.2753.92

36FredericksburgGillespie7.7719.3826.6953.84

37JasperJasper8.3816.1429.2753.79

38PecosReeves7.8625.0220.7853.66

39MagnoliaMontgomery11.0026.4416.1053.54

40Colorado CityMitchell6.6521.5825.0653.29

41MontgomeryMontgomery10.9026.8415.5453.28

42CaldwellBurleson5.4424.8422.6552.93

43PampaGray9.8920.2022.8052.89

44RichmondFort Bend10.6019.5622.4052.56

45RhomeWise8.8820.8022.5752.25

46BowieMontague7.3621.4023.3752.13

47BridgeportWise10.0921.3820.5452.01

48KrumDenton8.0716.7626.5251.35

49DevineMedina6.7618.5625.8051.12

50OdessaEctor10.6026.8413.5951.03

51Sugar LandFort Bend9.8921.6019.5050.99

52SangerDenton6.9615.5228.4650.94

53ColleyvilleTarrant7.9721.0021.9150.88

54CueroDeWitt7.6721.8021.3550.82

55BreckenridgeStephens8.2719.9822.5650.81

56WolfforthLubbock15.2523.2012.3050.75

57Rio Grande CityStarr11.5116.7622.2450.51

58New BraunfelsGuadalupe14.4421.6014.0050.04

59RomaStarr7.5716.1626.2750.00

60PoteetAtascosa8.2815.9425.1549.37

61FriendswoodGalveston8.6821.2019.4949.37

62La PorteHarris11.0016.5421.5949.13

63GiddingsLee11.8116.7420.5549.10

64Fort StocktonPecos7.8720.7820.3849.03

65League CityGalveston9.9924.8413.5148.34

66InglesideSan Patricio9.9921.6016.6648.25

67LongviewGregg15.0419.3813.5948.01

68KingslandLlano3.7212.5031.7047.92

69BanderaBandera8.6818.1620.8647.70

70PortlandSan Patricio7.6622.0018.0447.70

71JoshuaJohnson6.1517.1623.8547.16

72Dripping SpringsHays10.4922.8013.3546.64

73HallettsvilleLavaca3.239.0834.1946.50

74WimberleyHays9.6919.7816.8246.29

75Pipe CreekBandera0.6021.4024.1046.10

76HockleyHarris9.8922.8213.3546.06

77VenusJohnson7.6714.3224.0246.01

78College StationBrazos18.0712.3015.6145.98

79WaxahachieEllis15.4414.9415.2245.60

80The ColonyDenton9.8920.3815.2945.56

81GranburyHood7.4620.3817.6345.47

82ChandlerHenderson5.547.2632.5845.38

83StephenvilleErath14.0310.6820.6245.33

84HondoMedina9.7819.5615.9445.28

85PorterMontgomery10.9015.7418.4545.09

86BunaJasper9.088.6627.3245.06

87New CaneyMontgomery8.289.8826.6744.83

88BeltonBell14.9315.9413.8444.71

89ConroeMontgomery12.8216.3415.2144.37

90SilsbeeHardin4.8415.1224.3444.30

91BurnetBurnet11.1010.2822.8844.26

92GrahamYoung7.0620.3816.2643.70

93GonzalesGonzales7.0611.1025.2343.39

94LampasasLampasas10.909.8822.4843.26

95OvertonRusk5.3516.9420.7843.07

96CleburneJohnson9.7914.7418.5343.06

97DumasMoore4.3310.0827.4941.90

98AlvaradoJohnson5.9513.9221.9241.79

99AzleParker7.3615.7418.1341.23

100EdnaJackson5.7514.3219.8239.89

Showing 1 to 100 of 100 entries

Methodology

All data that was used in this report was licensed by LendEDU from Onboard Informatics. Onboard Informatics' dataset includes many stand alone statistics that were used for this report, including population figures, tax data, and income projection figures. In total, over 1,000 Texas towns and cities were evaluated for this study. An arbitrary population cutoff was established at 7,500, and any community with a population below that number was eliminated from further analysis.

The following three parameters and their respective sub-metrics were used to evaluate each and every Texas town and city based on their conduciveness towards small businesses.

1. Population Score (Weight - 20%, Maximum Point Total - 20 points)

Daytime Population Score - The difference in the normal population and the population that is present during standard working day hours (Weight - 10%, Maximum Point Total - 10 points)

Population Growth Score - Forecasted population growth over the next five years (Weight - 10%, Maximum Point Total - 10 points)

2. Income Score (Weight - 40%, Maximum Point Total - 40 points)

Disposable Income Score - The average disposable income available to residents (Weight - 20%, Maximum Point Total - 20 points) (note: this helps reduce the need for small busin﻿﻿ess loans)

Income Growth Score - Forecasted income growth over the next five years (Weight - 20%, Maximum Point Total - 20 points)

Burglary Score - Rate of burglaries compared to the national average (Weight- 8%, Maximum Point Total - 8 points)

Property Crime Score - Rate of property crimes compared to the national average (Weight - 8%, Maximum Point Total - 8 points)

Each town and city's respective sub-metric score for a specific sub-category was ranked against all the other respective town's sub-metric scores in the same sub-category on a percent scale from 0 to 100. This was done for each sub-metric. Later, each individual percent rank was multiplied by its weight to produce the point total. All of a given community's sub-metric scores in a specific parameter were added together to get the total parameter score. All three total parameter scores were then summed together to get the final score. Towns and cities in Texas with a greater final score were ranked higher on the list and vice-versa.